Product safety liability and insurance
The law relating to product safety liability and why taking out product liability insurance is a good idea.
Manufacturers, and sometimes others involved in a product supply chain, are liable for their products under the Consumer Protection Act 1987.
This Act means if the product is unsafe and causes personal injury or death to any person, or damage to private property, you could be sued for compensation.
For this reason, many businesses take out appropriate product liability insurance. Note this is not the same as general business or employers' liability insurance.
If a finished product contains a defect in a particular component, the product manufacturer and component manufacturer may be liable.
Other suppliers, such as wholesalers and retailers, are not liable unless they fail to identify the producer when requested by a person who has suffered harm. However, customers can sue retailers under laws on the sale of goods.
You should take positive action to monitor the safety of your products. You should also ensure you are covered by product liability insurance if you manufacture or repair products and possibly if you sell them. contains advice if you need to recall a product.
Insurance will provide valuable protection for your business against any costs or compensation awarded. Although it's not a legal requirement to have this type of insurance, it could mean the survival of your business should a claim be made against you.